Beginning from 3 November 2014, the close of Hong Kong Exchanges and Clearing Limited’s (HKEx) after-hours futures trading (AHFT) of Hang Seng Index (HSI) Futures, H-shares Index (HHI) Futures, Mini HSI Futures, Mini HHI Futures and Renminbi Currency (RMB) Futures* will be extended from 11:00 pm to 11:45 pm. In addition, the close of the AHFT clearing session will be extended from 11:45 pm to 12:30 am.
Since the introduction of AHFT in April 2013, over 3.3 million contracts have been traded. Average daily volume increased from 3,722 contracts, or 2.2 per cent of day session volume, in April 2013 to 16,152 contracts, or 9.5 per cent of day session volume, this month** (see Table 1). A total of 140 Futures Exchange Participants (EPs), about 80 per cent of all EPs, have registered for AHFT and 136 EPs have participated in AHFT since launch.
The purpose of AHFT is to cover most of Europe’s business hours and the morning part of the US business day so that investors who use the stock index futures and RMB Futures that trade them after hours can react to the market news from those places during those periods.
Currently, trading between 9:30 pm and 11 pm, a period that overlaps with the start of US stock trading, contributes a significant part of HKEx’s overall AHFT volume (over 40 per cent, see Table 2). If there is no extension of the AHFT close, the overlap will be reduced from one hour and 30 minutes to 30 minutes (ie, from 9:30 pm - 11 pm to 10:30 pm - 11 pm) when Standard Time becomes effective in New York in early November this year until New York switches to Daylight Saving Time in the first half of next year. With the extension, HKEx’s AHFT will overlap with US stock trading at least one hour and 15 minutes throughout the year.
* US dollar vs RMB in Hong Kong, or USD/CNH.
** Up to 24 October 2014
Table 1
Table 2
Summer Time = US Daylight Saving Time (24 Feb 2014 – 24 Oct 2014): US market opened at 9:30 pm, or 21:30, Hong Kong Time
Winter Time = US Standard Time (4 Nov 2013 – 21 Feb 2014): US market opened at 10:30 pm, or 22:30, Hong Kong Time
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